NDSN vs. ESAB, GGG, PKG, CNHI, SWK, ZBRA, LECO, PNR, AMCR, and AVY
Should you be buying Nordson stock or one of its competitors? The main competitors of Nordson include ESAB (ESAB), Graco (GGG), Packaging Co. of America (PKG), CNH Industrial (CNHI), Stanley Black & Decker (SWK), Zebra Technologies (ZBRA), Lincoln Electric (LECO), Pentair (PNR), Amcor (AMCR), and Avery Dennison (AVY). These companies are all part of the "industrial products" sector.
ESAB (NYSE:ESAB) and Nordson (NASDAQ:NDSN) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends, analyst recommendations, community ranking and media sentiment.
ESAB presently has a consensus target price of $93.75, indicating a potential downside of 10.66%. Nordson has a consensus target price of $278.00, indicating a potential upside of 4.66%. Given ESAB's stronger consensus rating and higher possible upside, analysts clearly believe Nordson is more favorable than ESAB.
91.1% of ESAB shares are held by institutional investors. Comparatively, 72.1% of Nordson shares are held by institutional investors. 7.0% of ESAB shares are held by company insiders. Comparatively, 0.9% of Nordson shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Nordson has a net margin of 18.59% compared to Nordson's net margin of 8.39%. ESAB's return on equity of 20.59% beat Nordson's return on equity.
In the previous week, ESAB had 13 more articles in the media than Nordson. MarketBeat recorded 17 mentions for ESAB and 4 mentions for Nordson. ESAB's average media sentiment score of 1.03 beat Nordson's score of 0.51 indicating that Nordson is being referred to more favorably in the news media.
Nordson received 434 more outperform votes than ESAB when rated by MarketBeat users. Likewise, 61.43% of users gave Nordson an outperform vote while only 37.50% of users gave ESAB an outperform vote.
ESAB has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Nordson has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
ESAB pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. Nordson pays an annual dividend of $2.72 per share and has a dividend yield of 1.0%. ESAB pays out 6.3% of its earnings in the form of a dividend. Nordson pays out 31.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ESAB has increased its dividend for 1 consecutive years and Nordson has increased its dividend for 61 consecutive years. Nordson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Nordson has lower revenue, but higher earnings than ESAB. ESAB is trading at a lower price-to-earnings ratio than Nordson, indicating that it is currently the more affordable of the two stocks.
Summary
Nordson beats ESAB on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NDSN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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